Ripple Braces for SEC Clash: CLO Affirms Quick Response to $2B Penalty Request Coming Soon
Ripple’s Chief Legal Officer, Stuart Alderoty, asserts that the company is actively responding to the U.S. Securities and Exchange Commission (SEC)’s recent court filing.
The SEC’s motion, submitted on March 25th, seeks substantial penalties from Ripple. Including disgorgement, prejudgment interest, and a civil penalty, totaling approximately $1.95 billion. This motion is part of an ongoing lawsuit initiated by the SEC in late 2020. Alleging that Ripple sold the XRP cryptocurrency as an unregistered security. While a prior ruling by US District Judge Analisa Torres determined that automated XRP sales didn’t constitute security offerings, institutional sales were found to violate securities law.
The SEC’s latest motion accuses Ripple of persistent violations of securities laws over several years. Alderoty confirms that Ripple will provide its response by April 22nd, countering misinformation about a final pretrial conference and clarifying that the SEC dropped charges against Ripple’s CEO and executive chairman.
Clever Robot News Desk 19th April 2024
